How to Start a Business including LLC’s, Corporations, & Partnerships

Learn how to start a business state-by-state with the help of our comprehensive tutorials. The below guides have covered all bases, providing you with all the information needed on forming/registering a limited liability company (LLC), a corporation, or a partnership. Whether you are forming an in-state, domestic entity, or you’re applying for authority to transact business as a foreign business, we have you covered at no additional cost. Select your state below to gain a full understanding of what’s in store.

Step 2 – Choose Your Entity Type

Pros – Shareholders are not liable for company debts, various tax advantages, lower fees in some states, fringe benefits for C corporations

Cons – Restrictions on who can and cannot be a shareholder, board of directors must hold regular meetings and take part in a variety of corporate formalities, C corporations may be subject to “double taxation” if income is distributed via dividends

Pros – No requirement for regular meetings or corporate formalities, no shareholder restrictions, LLC owners needn’t pay unemployment insurance on their salaries, owners are not personally responsible for company debts, fewer annual requirements

Cons – Both employee salaries and profits are subject to self employment tax, higher fees in some states, fringe benefits must be treated as taxable income, ownership cannot be sold in the form of stock

Pros – Simple formation procedures, low registration fees, all partners have equal rights and authority, higher borrowing capacity, tax advantages, any individual may become a partner resulting in a wider range of expertise

Cons – Partners may be liable for company debts, shared profits, greater opportunity for conflict between owners, the actions of one partner directly effects the other(s), a partnership may dissolve upon the disengagement or a partner

Step 3 – Select a Name

Perform a search of your name. Use your State’s Business Database below and if the search is returned with zero (0) results, the name is most likely available for use.

Step 6 – Additional Documents

It is highly recommended that no matter the type of entity you create to have a document that proves your business purpose as well as having an agreement with other members or shareholders (if more than 1 individual).

Corporate Bylaws – This is set by the shareholders and updated on a yearly basis with the annual meeting. The purpose of this form is to set the business parameters and roles of each individual.

LLC Operating Agreement – Use to coordinate the management of the Company as well as establish business purpose and identify how much each Member owns in the Company (no stocks like a Corporation, rather ownership is listed as a percentage and ONLY recorded in the operating agreement.

Partnership Agreement – Use to make a business agreement with other individuals apart of the entity and establish ownership/payment structure.

Step 7 – Employer Identification Number (EIN)

Also known as a Federal Employer Identification Number (FEIN) and is like a Social Security Number for businesses. Without this number, an entity is not able to conduct business transactions such as opening a bank account. After the entity has been formed this number should be retrieved from the IRS (Online or with Form SS-4).

COMPLETE!

Now your business is legally up and running and just make sure to renew with the State on an annual basis.